Football and Call Reports: The Fundamentals
When high school football practices start every summer in Texas, the local TV station always goes out to cover the teams and interview the coaches. They always say the same thing, “We are going to concentrate on the fundamentals, basic blocking and tackling.” Before the plays can be run the players first have to master the basics.
Preparing the Call Report also calls for attention to the fundamentals. This means that the quality of the data and information used to prepare it should be accurate and well organized. In our practice we have seen some problem areas that, if addressed, will make a bank’s quarterly reporting more efficient and accurate.
The first fundamental is for a bank to ensure that subsidiary accounting ledgers, such as investment accounting reports and loan and deposit subsystem totals, are in balance with the general ledger. If the source of information used by the Call Report preparer does not match the general ledger, a lot of time can be wasted in reconciling the differences, correcting the totals, and documenting the resulting adjustments. Prior balancing of subsidiary accounting ledgers with the general ledger is a great way to avoid a flag on the play.
Another fundamental is the accuracy of quarterly core and supplemental system reports that compile and total the figures to be reported. Properly mapped and coded, these reports are great tools. These reports need to be maintained, however. The addition of new general ledger accounts and other changes can throw off their accuracy. The best time to take care of this is in practice, before kick-off at the end of the quarter.
Our last tip is to try to make the general ledger accounts align as closely as possible to Call Report schedules. This will make both report mapping and reconciliation easier, and report preparation more efficient. Mastering the fundamentals can help you avoid those fourth down and long yardage situations on the 30th of the month when the report is due.
